Central bank announced programs aimed at supporting large and small businesses reeling from coronavirus
The US Federal Reserve has launched an aggressive plan to buy as much government-backed debt as it needs to keep financial markets functioning as plans for a $1.8tn-plus bailout of business and consumers stalled in Congress.
The central bank announced a series of programs on Monday aimed at supporting large and small businesses already reeling from the economic blow of coronavirus.
Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate, the central bank said in a statement, adding that the Federal Reserve is using its full range of authorities to provide powerful support for the flow of credit to American families and businesses.
As part of the effort the central bank will relaunch a massive bond-buying program, the Term Asset-Backed Securities Lending Facility, or Talf, last used in response to the 2008 financial crisis, to support the flow of credit to consumers and businesses.
The Fed has previously announced it would purchase at least $500bn of Treasury securities and at least $200bn of mortgage-backed securities but will now buy bonds in the amounts needed to support smooth market functioning.
The bank also said it would soon roll out a Main Street business lending program to support lending to eligible small and midsize businesses.